Reports of a Wall Street lawyer as a potential SEC chair candidate in Trump’s administration have divided the crypto community, with some raising concerns that his traditional finance background may lead to an anti-crypto stance.

However, others are more optimistic, speculating that his experience may lead to “thoughtful frameworks” for crypto regulation.

Levin Naftalis and Frankel law firm partner Richard Farley is reportedly being considered by Trump’s transition team as a potential replacement for SEC chair and crypto skeptic Gary Gensler, according to a Nov. 7 report by the New York Post. 

Farley report receives mixed responses

Since Trump was declared the 47th US president on Nov. 6, speculation has mounted about who might replace Gensler. Farley’s reported potential as a candidate, however, has received a mixed reaction from the crypto community.

“So far, most of Trump’s top proposed picks for SEC aren’t crypto-friendly,” Adam Cochran, partner at venture capital firm Cinneamhain Ventures, wrote in a Nov. 8 X post.

“Farley would be one of the worst — he’s a Wall St banking lawyer tapped by RFK,” Cochran further claimed. “Who you want,” Cochran said, is Chris Giancarlo, aka the “Crypto Dad” of the CFTC; SEC Commissioner Hester Peirce, aka “Crypto Mom,” or Robinhood’s legal chief Dan Gallagher.

Reuters reported on Nov. 7, citing people with knowledge of the matter, that Gallagher is currently the Trump team’s frontrunner to replace Gensler.

Farley’s experience may bolster crypto regulation, says economist

Meanwhile, network economist Timothy Peterson is more optimistic than Cochran about Farley potentially replacing Gensler.

Peterson explained in a Nov. 8 X post that despite Farley’s focus on traditional finance, “his perspectives on regulation emphasize the importance of balanced oversight to foster innovation while maintaining market stability.” He further stated:

“These insights can be extrapolated to contemporary issues like cryptocurrency regulation, highlighting the need for thoughtful frameworks.”

Cochran added that “some of the other names floated so far have been banking guys who actively tried to cripple cryptos growth.”

Related: Trump’s presidency could bring SEC reform and pro-crypto regulations

Pseudonymous crypto trader Adios King said in a Nov. 8 X post that “Farley hasn’t taken a public stance on crypto, but his extensive background in finance suggests a pragmatic approach.”

Crypto attorney Jake Chervinsky recently opined that Mark Uyeda, an SEC commissioner, is a strong candidate for the role.

Commissioner Uyeda is known for criticizing the crypto regulatory approach by Gensler, who, in October, called his policies a “disaster for the whole industry.”

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